Page 134 - ar2012

CDL Hospitality TrustS
132
Notes to the Financial Statements
23 Commitments
HBT H-REIT Group Stapled Group
2012 2011 2012 2011 2012 2011
$’000 $’000 $’000 $’000 $’000 $’000
(a) Capital expenditure
contracted but not
provided for – – 6,170 1,581 6,170 1,581
(b) The H-REIT Group and the Stapled Group lease out their investment properties. Non-cancellable
operating lease rentals are receivable as follows:
HBT H-REIT Group Stapled Group
2012 2011 2012 2011 2012 2011
$’000 $’000 $’000 $’000 $’000 $’000
Within 1 year – – 61,912 62,512 61,912 62,512
After 1 year but
within 5 years – – 225,641 238,837 225,641 238,837
After 5 years – – 350,186 401,103 350,186 401,103
– – 637,739 702,452 637,739 702,452
The above operating lease receivables are based on the fxed component of the rent receivable
under the lease agreements, adjusted for increases in rent where such increases have been
provided for under the lease agreements.
(c) The H-REIT Group and the Stapled Group have entered into an operating lease for a conference
centre with a related party. The lease runs for an initial period of 5 years, with an option to renew
the lease on expiry of the initial period. The H-REIT Group’s and the Stapled Group’s commitments
for future minimum lease payments under the non-cancellable operating lease are as follows:
HBT H-REIT Group Stapled Group
2012 2011 2012 2011 2012 2011
$’000 $’000 $’000 $’000 $’000 $’000
Within 1 year – – 755 755 755 755
After 1 year but
within 5 years – – 1,925 2,680 1,925 2,680
– – 2,680 3,435 2,680 3,435
(d) Under the terms of the lease agreement for Novotel Singapore Clarke Quay, the H-REIT Group
is required to incur expenditure equivalent to 3% of the annual gross revenue of the hotel to
maintain and improve the hotel’s furniture and fxtures, equipment and its environment.
As at the reporting date, the H-REIT Group and the Stapled Group is committed to incur capital
expenditure of $140,000 (2011: $140,000) under the terms of the lease agreement.